Fdx vanguard after tax
06-16-2014, 08:29 AM
#11
Gets Weekends Off
Joined APC: Nov 2013
Posts: 2,756
Yeah, probably just people in their first year, and do we even have any of those? But, as Gnaw said, everyone can get around the income limits with a Backdoor Roth (you just open up a traditional IRA and convert the next day. You can do it on Vanguard and follow your FedEx 401K on the same page). Only thing is, if you have other IRA's, it gets complicated and can be a costly mistake. Easy if you only have your 401K, other Roths, and no other IRA's. Bogleheads is an awesome forum.
06-16-2014, 10:23 AM
#12
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Joined APC: Jun 2010
Posts: 442
Quote:
Originally Posted by CrakPipeOvrheat
I like you busdriver12. You think the way I think. I max out my Roth 401k and both my wife and I's Roth IRA's every year and I'm in my late 20's. I work at a regional and I could do so for the rest of my career (I won't though) and still have more money to retire with at an earlier age than this guy. Spending it all now or more than all of it through financing, I call that living the "American dream". My friends tell me I'm "already ahead of the game just for the fact that I'm even thinking about retirement at my age". I tell them I'm not ahead of the "game". I'm ahead of the people who are behind in the game or not participating in the game. In my mind, I am still very much behind in the "game" due to many years stagnated in a regional FO seat.
Not sure who you think "this guy" is whom you will have more money than, but the original poster was simply inquiring if he should invest his extra cash in the same accounts where the company puts his 401k money. That is where I put my extra money after taking out all my tax gimmicks money. I personally think it would be wiser to diversify to another company but I am to lazy.
Originally Posted by CrakPipeOvrheat
I like you busdriver12. You think the way I think. I max out my Roth 401k and both my wife and I's Roth IRA's every year and I'm in my late 20's. I work at a regional and I could do so for the rest of my career (I won't though) and still have more money to retire with at an earlier age than this guy. Spending it all now or more than all of it through financing, I call that living the "American dream". My friends tell me I'm "already ahead of the game just for the fact that I'm even thinking about retirement at my age". I tell them I'm not ahead of the "game". I'm ahead of the people who are behind in the game or not participating in the game. In my mind, I am still very much behind in the "game" due to many years stagnated in a regional FO seat.
Not sure who you think "this guy" is whom you will have more money than, but the original poster was simply inquiring if he should invest his extra cash in the same accounts where the company puts his 401k money. That is where I put my extra money after taking out all my tax gimmicks money. I personally think it would be wiser to diversify to another company but I am to lazy.
06-16-2014, 11:21 AM
#13
Gets Weekends Off
Joined APC: Apr 2013
Posts: 1,624
Yeah, probably just people in their first year, and do we even have any of those? But, as Gnaw said, everyone can get around the income limits with a Backdoor Roth (you just open up a traditional IRA and convert the next day. You can do it on Vanguard and follow your FedEx 401K on the same page). Only thing is, if you have other IRA's, it gets complicated and can be a costly mistake. Easy if you only have your 401K, other Roths, and no other IRA's. Bogleheads is an awesome forum.
I have money in our two retirement funds through FedEx. I have a separate 401K and Roth IRA. I contribute the max in the Roth each year. The separate 401K is from another company. And I contribute 15% pay up until the yearly limit into the FedEx/Vanguard accounts.
06-16-2014, 11:28 AM
#14
...Whatever It Is!
Joined APC: Jul 2006
Posts: 4,680
Can you give some advice on what exactly a FedEx pilot should be doing as far as investments ... post-tax pre-tax etc.etc. I admit, I am a financial illiterate and need some coaching.
I have money in our two retirement funds through FedEx. I have a separate 401K and Roth IRA. I contribute the max in the Roth each year. The separate 401K is from another company. And I contribute 15% pay up until the yearly limit into the FedEx/Vanguard accounts.
I have money in our two retirement funds through FedEx. I have a separate 401K and Roth IRA. I contribute the max in the Roth each year. The separate 401K is from another company. And I contribute 15% pay up until the yearly limit into the FedEx/Vanguard accounts.
I'd rather get marital advice from an airline pilot than financial advice!
06-16-2014, 11:53 AM
#15
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Joined APC: Dec 2007
Position: Retired
Posts: 404
Can you give some advice on what exactly a FedEx pilot should be doing as far as investments ... post-tax pre-tax etc.etc. I admit, I am a financial illiterate and need some coaching.
I have money in our two retirement funds through FedEx. I have a separate 401K and Roth IRA. I contribute the max in the Roth each year. The separate 401K is from another company. And I contribute 15% pay up until the yearly limit into the FedEx/Vanguard accounts.
I have money in our two retirement funds through FedEx. I have a separate 401K and Roth IRA. I contribute the max in the Roth each year. The separate 401K is from another company. And I contribute 15% pay up until the yearly limit into the FedEx/Vanguard accounts.
06-16-2014, 12:36 PM
#16
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Joined APC: Sep 2006
Position: Retired
Posts: 3,717
Find a Certified Financial Planner who you trust, either through doing research about him or her, or by word of mouth from friends or relatives (whom you trust), and then meeting with the CFP and paying for their advice. Accept no advice from pilots, except the general type of stuff, like "have a 6 months emergency fund" or any of the suggestions that Flyinhigh offered above.
06-16-2014, 12:44 PM
#17
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Joined APC: Nov 2013
Posts: 2,756
I don't know, PurpleToolbox, I think you can get pretty good advice from pilots. The advice you're getting here is just generic useful advice that you'd get from most any advisor. Now if people start recommending things that sound really weird or off the wall, sure, disregard. It sounds like you are doing the smart thing with the Roth and 401K. Hopefully you're just dollar cost averaging into good index funds and funds like Primecap, and not putting everything in cash or bonds, or pulling everything out when you get alarmed. That's all just generic advice. And when you find a good financial advisor who isn't recommending oddball things that he can churn for a profit, let me know. I'd like one I can trust!
06-16-2014, 05:46 PM
#19
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,199
...
I made it to retirement about two years ago so maybe I can pass on a few general rules of thumb. First, get 6 to 12 months of living expenses in an after tax emergency fund. Maybe a tax exempt bond fund or something conservative. In this industry you never know what's coming at you in the future. Second, "If it flys, floats, or flirts, you may want to consider renting before buying." Third, keep your original house and original wife. Fourth, max out the 401 every year and as soon as you are eligible, max out the catchup contributions. Finally, enjoy the journey. You are with a good company with a good future. You should be just fine.
I made it to retirement about two years ago so maybe I can pass on a few general rules of thumb. First, get 6 to 12 months of living expenses in an after tax emergency fund. Maybe a tax exempt bond fund or something conservative. In this industry you never know what's coming at you in the future. Second, "If it flys, floats, or flirts, you may want to consider renting before buying." Third, keep your original house and original wife. Fourth, max out the 401 every year and as soon as you are eligible, max out the catchup contributions. Finally, enjoy the journey. You are with a good company with a good future. You should be just fine.
06-16-2014, 08:32 PM
#20
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Joined APC: Jul 2007
Position: Captain
Posts: 101
Anyone can backdoor a Roth, there is no AGI limit. It is done through the conversion of a traditional IRA each year. The AGI cap came off 4 years ago. Talk with the IRA folks at Vanguard. Do not use the 1-800 number on the company 401K side (because they only do FedEx 401k stuff) use their normal commercial 1-800. Vanguard even let's you keep a traditional IRA account open for 13 months with a zero balance and no fees. I wonder why? I have been doing it ever since the AGI cap came off but you definitely want to talk with a professional because f'n it up could have some nasty tax penalties. Good luck, the ATM
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